UBS Group Has Lowered Expectations for LegalZoom.com (NASDAQ:LZ) Stock Price

LegalZoom.com (NASDAQ:LZ) had its price objective cut by equities research analysts at UBS Group from $12.00 to $8.00 in a research report issued on Friday,Benzinga reports. The brokerage presently has a “neutral” rating on the stock. UBS Group’s price objective would suggest a potential upside of 21.95% from the stock’s current price.

A number of other equities research analysts also recently weighed in on the company. JPMorgan Chase & Co. reduced their target price on shares of LegalZoom.com from $14.00 to $11.00 and set an “overweight” rating for the company in a research report on Wednesday. Zacks Research cut shares of LegalZoom.com from a “hold” rating to a “strong sell” rating in a research note on Monday, January 19th. Barclays raised their target price on shares of LegalZoom.com from $10.00 to $12.00 and gave the stock an “equal weight” rating in a report on Thursday, November 6th. Weiss Ratings reiterated a “hold (c)” rating on shares of LegalZoom.com in a research report on Monday, December 29th. Finally, Morgan Stanley boosted their price target on LegalZoom.com from $8.50 to $9.00 and gave the company an “underweight” rating in a research note on Thursday, November 13th. Three equities research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Hold” and an average price target of $10.42.

LegalZoom.com Stock Down 7.0%

Shares of NASDAQ:LZ opened at $6.56 on Friday. LegalZoom.com has a 12-month low of $6.29 and a 12-month high of $12.40. The business has a 50 day moving average of $8.99 and a 200-day moving average of $9.77. The stock has a market cap of $1.16 billion, a PE ratio of 82.01, a P/E/G ratio of 1.12 and a beta of 1.22.

LegalZoom.com (NASDAQ:LZ) last announced its earnings results on Thursday, February 19th. The company reported $0.17 earnings per share for the quarter, missing analysts’ consensus estimates of $0.18 by ($0.01). The firm had revenue of $190.27 million for the quarter, compared to the consensus estimate of $184.85 million. LegalZoom.com had a return on equity of 6.17% and a net margin of 2.04%.LegalZoom.com’s revenue for the quarter was up 17.7% on a year-over-year basis. During the same quarter last year, the business posted $0.19 EPS. Equities research analysts expect that LegalZoom.com will post 0.25 earnings per share for the current year.

LegalZoom.com announced that its board has initiated a stock buyback program on Thursday, February 19th that permits the company to buyback $100.00 million in outstanding shares. This buyback authorization permits the company to reacquire up to 8.1% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its stock is undervalued.

Insider Transactions at LegalZoom.com

In other LegalZoom.com news, CFO Noel Bertram Watson sold 15,000 shares of the business’s stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $6.96, for a total transaction of $104,400.00. Following the completion of the transaction, the chief financial officer directly owned 1,480,860 shares in the company, valued at $10,306,785.60. The trade was a 1.00% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. 5.90% of the stock is owned by company insiders.

Hedge Funds Weigh In On LegalZoom.com

Hedge funds and other institutional investors have recently modified their holdings of the business. Arrowstreet Capital Limited Partnership raised its holdings in shares of LegalZoom.com by 20.8% during the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 4,408,170 shares of the company’s stock worth $45,757,000 after buying an additional 758,367 shares in the last quarter. Goldman Sachs Group Inc. grew its position in LegalZoom.com by 165.3% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,730,487 shares of the company’s stock valued at $37,044,000 after acquiring an additional 2,324,481 shares during the last quarter. Boston Partners raised its stake in LegalZoom.com by 81.0% during the fourth quarter. Boston Partners now owns 3,623,111 shares of the company’s stock worth $36,054,000 after acquiring an additional 1,621,125 shares in the last quarter. Franklin Resources Inc. raised its stake in LegalZoom.com by 2.8% during the third quarter. Franklin Resources Inc. now owns 3,327,296 shares of the company’s stock worth $34,537,000 after acquiring an additional 90,599 shares in the last quarter. Finally, Dimensional Fund Advisors LP lifted its holdings in shares of LegalZoom.com by 12.7% in the fourth quarter. Dimensional Fund Advisors LP now owns 3,021,764 shares of the company’s stock worth $30,007,000 after acquiring an additional 340,780 shares during the last quarter. Institutional investors own 81.99% of the company’s stock.

More LegalZoom.com News

Here are the key news stories impacting LegalZoom.com this week:

• Positive Sentiment: Q4 & full‑year results showed revenue and cash‑flow strength (Q4 revenue $190.3M vs. $184.9M est.; full‑year revenue +11%; record operating cash flow and free cash flow; $203.1M cash, no debt). GlobeNewswire: Press Release
• Positive Sentiment: Board authorized a $100M share repurchase (represents ~8.1% of shares), a tangible capital‑return action that typically supports the share price. RTT News: Buyback
• Neutral Sentiment: Results were mixed: EPS missed by $0.01 (reported $0.17 vs. $0.18 consensus) even as revenue grew ~17.7% YoY; margins and earnings leverage remain watch points. MarketBeat: Earnings
• Neutral Sentiment: Guidance: FY‑2026 revenue $805M–$825M (around or slightly above consensus) and Q1 revenue guide in line — supports top‑line continuation but investors will watch execution. GlobeNewswire: Guidance
• Negative Sentiment: Analyst downgrades and PT cuts pressured sentiment: UBS cut its PT from $12 to $8 and moved to Neutral; other banks (JPMorgan coverage noted) have similarly become more cautious. Analyst tone likely amplified selling. Benzinga: UBS PT Cut AmericanBankingNews: JPMorgan Note
• Negative Sentiment: Insider selling: CFO Noel Watson sold 15,000 shares (~$104K) last week; while small vs. his holdings, exec sales can create near‑term headline pressure. SEC Form 4

LegalZoom.com Company Profile

LegalZoom.com, Inc (NASDAQ: LZ) operates as a leading online legal technology company that provides a broad range of legal and business services to individuals, families and small businesses. Through its digital platform, the company offers customized legal documents and filing services, including business formation (LLCs, corporations and nonprofits), estate planning (wills and trusts), intellectual property protection (trademarks and copyrights), and ongoing compliance support. LegalZoom also connects customers with independent attorneys for consultations on matters such as family law, immigration and real estate.

Founded in 2001 by entrepreneurs Brian Lee, Brian P.